Tesla supporters protest after IRA incentives shun popular BEVs and back hybrids

Tesla supporters protest after IRA incentives shun popular BEVs and back hybrids
Tesla supporters protest after IRA incentives shun popular BEVs and back hybrids

Supporters of Tesla and electric vehicles are reacting negatively to cars qualifying for the Cut Inflation Act for its EV incentive. Based on the list of vehicles eligible for the $7,500 IRA tax credit, popular battery-electric cars like certain variants of the Tesla Model Y and Ford Mustang Mach-E will not benefit from any incitement from the IRA.

However, a number of gasoline-powered hybrids actually do. These include the Audi Q5E Quattro, a hybrid SUV that has an EPA rating of 61 MPGe and 23 miles of pure electric range; as well as the Jeep Wrangler 4XE, a 5-seater hybrid SUV that gets 20 MPGe and an all-electric range of 21 miles. By comparison, the Tesla Model Y Dual Motor AWD has 330 miles of all-electric range and 122 MPGe, while the Ford Mustang Mach-E California Route 1 with Extended Range Battery has 312 miles of all-electric range and 98 MPGe, according to the EPA.

Credit: US Department of Energy

As former Tesla operations analyst turned YouTube host Farzad Mesbahi pointed out in a recent video, these discrepancies appear to be because the IRA incentives are split into two categories: “SUVs/Trucks/Vans” and all the others”. “Vehicles in the SUV/Truck/Van category are eligible for the IRA tax credit if they have a price tag of $80,000 or less. Vehicles in the “All Others” category are capped at $55,000.

According to Tesla’s online configurator, the Model Y Dual Motor AWD currently starts at $65,990. The Mustang Mach-E California Route 1 with Extended Range Battery, on the other hand, has a base MSRP of $63,575, according to Ford’s official website. So the Model Y and Mustang Mach-E, which also happen to be two of the most popular all-electric crossovers in the US today, would not get any IRA incentives.

Interestingly enough, the Model Y and Mach-E, while officially classified as “small sport utility vehicles” by the EPA, are simply not recognized as SUVs as far as the IRA is concerned. This is a noticeable discrepancy, of course, and it has the potential to incentivize the purchase of less efficient vehicles over superior options. If a customer ends up buying a hybrid Jeep that gets 20 MPGe versus a Mustang Mach-E that gets 98 MPGe because of the IRA, after all, the initiative pretty much fails at base. Tesla CEO Elon Musk for his part commented on the matter, noting that the situation is “messed up.”

Watch a video on the subject below.

Feel free to contact us with new tips. Just send a message to [email protected] to give us a heads up.

Tesla supporters protest after IRA incentives shun popular BEVs and back hybrids

. supporters Tesla protest after inducements lIRA avoid BEV popular support hybrid

. Tesla supporters protest IRA incentives shun popular BEVs hybrids

PREV Russia freezes Linde assets worth $488m
NEXT ‘Big Short’ Michael Burry sees US recession in 2023, soaring inflation